Osram bidding war intensifies as AMS ups offer to €4.5bn

Pressure is growing on a consortium of private equity majors attempting to buy German lighting business Osram after industry peer AMS increased its own offer to €4.5bn.

Osram had said on Wednesday last week that a partnership between Bain Capital and Advent had indicated it could offer a “meaningful premium”over the then €38.50 per share offer from AMS.

That offer valued the company at €4.3bn, and provided protections for jobs and manufacturing sites in Germany.

But the Austrian sensor maker said it had now upped its offer to €41 per share, adding that it had now become Osram’s largest shareholder by picking up new shares to take its ownership to 14.69 per cent.

AMS said its offer would expire on October 1.

Bain Capital and fellow private equity major Carlyle had kicked off the bidding war for Osram at the start of July, with the lighting business accepting a €3.4bn offer from the pair.

AMS entered the fray a month later with its €4.3bn offer, and it was widely reported that Bain and Carlyle were considering a second, higher buyout offer.

Instead, Advent appeared on the scene earlier this month for a joint takeover bid with Bain, with Reuters citing sources saying Carlyle did not want to spend any more money on the deal.

Osram specialises in infrared and laser lighting as well as other semiconductor-based technologies.

The company had focused on lighting bulbs, but of late expanded into more specialist areas, making products for purposes such as virtual reality and autonomous driving, as well smartphones and smart lighting.

McRock Capital has closed its new venture capital fund on $112m and will target the industrial internet of things (IoT) space.

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